Beginning January 1, 2026, UK crypto firms will be mandated to report all customer transactions, as part of an effort to enhance crypto tax reporting practices. This initiative requires the collection of extensive customer data, including full names, home addresses, tax identification numbers, and details of the transaction, such as the cryptocurrency used and the amount transferred. Companies, trusts, and charities will also need to disclose their legal business names and addresses. Failure to comply with these reporting requirements may lead to penalties of up to 300 British pounds per user. The UK Revenue and Customs department has indicated it will provide guidance on compliance in the future but is encouraging firms to initiate data collection immediately. This move aligns with the UK's integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to promote transparency in tax reporting. This regulatory shift emphasizes the UK government's commitment to a robust framework that fosters industry growth while ensuring consumer protection, distinguishing its approach from the EU's MiCA framework, which imposes stricter controls on stablecoin issuers.

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